I agree that existing management should always fall on their swords. At a minimum, the government should insist they resign in exchange for funds. The U.K. has been better here than the U.S.

When a manager screws up, their future actions are often just a way to cover up past mistakes, exacerbating the problem. In my view, it would mean that management would not be inclined to take actions merely to support previous missteps.

And it is unreal that I did write this 10 months ago. The fact that we are dealing with the same problem 10 months later is clear evidence that we have not been aggressive enough in getting the rot out of the system.

“Swedish Lex said,
February 26th, 2009 @4:26 am

I have not read the details about RBS’ loss, but I suspect that it is the result of new management and owner (UK taxpayer) making their own assessment of the extent of the rot. If this indeed is the case, it only again proves that the managment of zombie banks has to be ejected as they otherwise will cover their behinds for as long as they can and new people, reporting to the taxpayer, be put in place instead.”

Are you sure that you posted this on 14 May?